Home Loans become Competitive
With the soaring property prices aggravated further by the Union Budgets hike in services
tax from 10.3% to 12.36%, homebuyers can now breathe easily. There is some consolation by
way of reduction in home leading rates not only for the new borrowers but also for the
existing borrowers. A few banks have reduced the home loan leading rates by 25 basis points
to 75 basis points depending on the loan amount and repayment tenure.
The move triggered by the countryâ&#x20AC;&#x2122;s largest bank, State Bank of India, has made other
banks to follow suites. In fact SBI has decided to allow existing borrowers to reprise their loan
at lower rates but the switchover will be subject to payment of a small fee at one percent of
the outstanding loan amount. A significant development is that there no cap set on the loan
tenure or the amount of the loan to reprise their loan to a lower rate nor is there any
prescribed time limit set for the switchover to the new option.
Following SBI, IDBI bank has reduced its floating home loan rates on new loans up to a
maximum of 75 basis points. The reduction in lending rates depends on the loan amount and
it is higher for larger loan amounts. Canara Bank has slashed home loan rates ranging from 25
basis points to 75 basis points depending on the repayment tenure. The saving will be 4,606
for an Rs 50 lakhs loan and Rs 6,910 on an Rs 75 lakhs loan with tenure of 25 years.
Incidentally Canara Bank has also waived additional interest of 25 basis points charged earlier
for acquiring a second home. The revised rates will be effective April 2.
It is expected that more banks would follow the rate reduction in the coming weeks.
While some of the banks may await RBIâ&#x20AC;&#x2122;s annual policy statement on April 17, others may
join the bandwagon to stop the exodus of existing customers to other institutions, according
to industry sources.
The Union Budget for 2011-12 has already provided sops that would give a boost to the
home loan sector. The National Housing Banking has been allowed to raise Rs 5,000 crore
through tax free bonds which provide refinancing to housing finance companies. The external
commercial borrowings have been allowed for low-cost housing with result developer will be
able to lower their interest costs now as there is a significant difference in the interest rates
between India and other countries.
Further the extension of 1% interest subvention scheme for home loans up to Rs 15 lakhs
for affordable housing continues for another year which will benefit homebuyers in the unit
price up to 25 lakhs.

As regards leasing, the IT/ITES sector accounted for the majority of the leasing with the
major companies in the sector leasing office space in Bangalore including Net App, Intercall,
Caterpiller Inc, Cisco, IXIA, LIARD Technologies, Enterprise Nube, Carl Zeiss, Time Warner,
InMobi, Indegene, SmileInteractive, Flipkart and Quintiles.

Market Outlook
With more land available, improved connectivity and proximity to IT corridors, the suburban and
peripheral locations are witnessing the emergence of a number of residential projects especially
premium villas in Bangalore, Luxury villas in Bangalore, Villas for sale Bangalore and independent house
Bangalore at competitive prices by the builders in Bangalore / developers in Bangalore.

The city is witnessing a number of infrastructure developments such as signal free access
from Sarjapur ORR to the Airport, Mass Rapid Transit System- Metro which will enhance
connectivity within the city and elevated expressway along the Bellary Road, again to the
Airport in the Bangalore. This project would enhance connectivity from city center to the
peripheral market which is expected to augment demand for office developments in the
North and South- East locations of the city. Overall the city continues to retain its status as
the lucrative office market both from the investors and corporate sectorâ&#x20AC;&#x2122;s perspective.
Anugraha builders& developers,a Bangalore based construction company, has vast experience and
expertise in the area of architecture and design, builders in Bangalore, villas in Bangalore and Properties
in Bangalore. Some of their constructions are green acres, green ville, sai anuragraha enclave.
Since 2008,anugraha builders & developers, are committed to design independent houses, develop
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For more Details please contact:
M/s Anugraha Green Acres
No: 13, Ring Road, KAS Officer,
H B C S Layout,
4th Phase, J P Nagar,
Bangalore-560078
Contact:
Tallam V Nagaraja : +91 9611197474 , 9980131316
R Eshwar Rao: +91 9844031010, 9008031010
Phone No : 080-42553000
E-mail :
info@anugrahabuilders.com